His gaze, as the Shanghai Composite Index quickly rebounded, fixed on the ChiNext Index, which showed little movement and did not follow the rebound.
The market's real problem.
The area with severe lack of liquidity is the countless small-cap conceptual stocks, led by the ChiNext Index and SME Board Index!
Just pulling up heavyweight stocks cannot save these shares, nor can it alleviate the market's liquidity crisis.
Understanding this, Su Yi was not in a hurry to close his positions in the CSI 500 Index Futures main contract, because he knew that the vast majority of the CSI 500 Index constituent stocks were not the central enterprises and state-owned enterprises that this mysterious fund was focusing on.
As expected...
An enormous amount of capital poured into a multitude of central enterprises and state-owned enterprise stocks.
It almost pushed the Shanghai Composite Index into positive territory, but failed to trigger a follow-up rebound in the ChiNext Index and SME Board Index.
Finally, in the last half-hour of the trading day, the mysterious fund reluctantly ceased operations, and the Shanghai Composite Index began to fall rapidly again.
The market's panic selling sentiment, after this setback, not only did not ease but intensified.
Ultimately, when 3 PM arrived and the market closed.
The Shanghai Composite Index closed down 3.34%, barely holding onto 4000 points, saving some face.
Meanwhile, the ChiNext Index, SME Board Index, and CSI 500 Index continued to plummet by 8%, with the CSI 500 Index Futures main contract still closing at its daily limit down.
The situation of thousands of stocks hitting their daily limit down in both markets could not be reversed.
Investors suffering massive losses to the point of despair continued to increase, and leveraged investors hitting forced liquidation alert lines or already being passively liquidated also grew in number.
And due to continuous lack of liquidity and completely collapsed market investment sentiment.
Systemic financial risk was quietly approaching.
After the market closed, in the evening, facing the entire investor community's soaring grievances and extensive media coverage.
The regulatory authorities finally could no longer remain calm and continued to lower the mandatory liquidation line for margin trading accounts, and also stopped mentioning the cleanup of off-exchange margin financing.
However, this kind of minor beneficial policy.
For a market already in collapse, needing strong medicine, it was completely ineffective.
Thus, the next day, June 30th, Tuesday.
The entire market once again opened with a steep drop, the Shanghai Composite Index opened down 1.52%, while the ChiNext Index and CSI 500 Index both opened down about 4%, with hundreds of stocks hitting their daily limit down right at market open.
After continuous steep drops.
Su Yi's 30 main contracts in hand saw a total unrealized profit surge to over 14 million.
However, he was still not in a hurry to close his positions for profit.
Because he knew that the market's liquidity predicament had still not been resolved at this time, and the panic selling sentiment had still not been vented and released.
Moreover, in the market's unilateral steep decline, more and more people were using stock index futures for hedging or selling short stock index futures for speculation.
In this situation, without major positive stimuli and without prioritizing the resolution of the liquidity predicament.
The decline would simply not stop.
"It's insane, absolutely insane..."
Seeing the market continue its steep decline, Lin Minghui, sitting beside Su Yi in the VIP trading room of the brokerage, showed despair in his eyes.
"I've never seen such a trend; there's simply no liquidity."
He held tens of millions worth of chips.
Facing stocks that hit a one-word daily limit down in his account, he couldn't even stop losses.
"Old Lin, short stock index futures to hedge, stop holding onto fantasies,"
Mr. Deng sighed and said,
"The bull market might be over."
Lin Minghui looked up at Mr. Deng, his eyes full of unwillingness.
But after half a month of continuous market pounding, and losing nearly 30 million yuan.
He also had no choice but to sigh heavily in resignation, honestly opened his stock index futures trading account, injected his last liquid funds, and prepared to short stock index futures to hedge losses in his stock account.
A few minutes later, the market officially opened for trading.
Lin Minghui placed an order for 10 short contracts of the CSI 500 Index Futures main contract, no longer holding any expectations for his stock account.
After his placed orders were executed.
The market maintained a sideways consolidating trend for less than ten minutes before continuing its unilateral sharp decline.
At 9:45 AM, the Shanghai Composite Index's decline widened to 3%, and the ChiNext Index's decline reached 5%.
At 10:05 AM, the Shanghai Composite Index's decline reached 4.5%, while the ChiNext Index's decline had exceeded 6.5%.
At 10:25 AM, the Shanghai Composite Index's decline broke through 5%, once again losing the two major integer marks of 4000 points and 3900 points, while the ChiNext Index's decline had expanded to over 7.5%, and thousands of stocks hitting their daily limit down reappeared in both markets.
Lin Minghui looked at the scene of 'thousands of stocks hitting daily limit down' before him, not knowing how many times it had occurred.
His expression was already numb.
Fortunately, through timely hedging transactions at market open, he had recovered over 900,000 yuan in losses for his heavily losing stock account, so his mood was not too distressed at this moment.
"The market should be like this today, right?"
Mr. Deng saw that the 'CSI 500 Index Futures main contract' had once again touched the daily limit down position, and on the trading boards of both markets, the bulls had completely given up resistance, with very few active buyers, he couldn't help but say,
"This is no longer a normal correction, but a stock market crash!"
"It is a stock market crash,"
Someone nearby responded,
"Where do normal corrections have thousands of stocks hitting daily limit down consecutively?"
"Many stocks simply have no liquidity anymore. If this continues, the stock market crash will trigger systemic financial risks, and it will truly be all over."
"Continuous daily limits down, can't even close positions, I'm losing so much I want to jump off a building."
"Alas, the Shanghai Composite Index couldn't even hold 4000 points. That declaration by official media, '4000 points is the starting point of a bull market,' now... it's truly a joke."
Mr. Deng's words directly triggered complaints from a group of major investors in the trading room.
In the past half month, whether leveraged or not, as long as major investors held a large number of stocks, at this moment, everyone facing massive losses in their accounts regretted their initial decisions.
"Huh..."
Just as everyone in the trading room was filled with regret and complaints, Su Yi stared at the trend of the 'CSI 500 Index Futures main contract,' which had touched the daily limit down several times but always failed to firmly hit it.
Seeing more and more active buy orders or short-covering orders rapidly replenishing, he couldn't help but let out a surprised sound, thinking to himself,
"Something's strange. At this moment... a massive amount of active buy orders replenishing, could it be... good news?"
Before he could ponder further.
The next moment, accompanied by unusual movements on the stock index futures board.
Major heavyweight sectors like banking, securities, and insurance, almost all heavyweight financial stocks, saw violent unusual movements.
Countless massive active buy orders, like divine soldiers descending from heaven, surged wildly into the entire 'big finance' sector, driving a rapid rebound in benchmark stocks such as Huaxin Securities, Ping An of China, Huashang Bank, Bank of China....
Subsequently, amid the 'big finance' surge.
A multitude of central enterprise and state-owned enterprise conceptual stocks in the market, and even countless small and medium-cap conceptual stocks that had firmly hit their daily limit down, also followed suit with unusual movements.
Billions, tens of billions, and even hundreds of billions of yuan in massive buying capital.
Like a group of ghosts suddenly emerging from the darkness, they began to sweep across the entire market board, regardless of cost and consequences.
(End of this chapter)
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